What is chapter 13 bankruptcy?

Chapter 13 bankruptcy is a reorganization of debt, much like a consolidation of debt. Under Chapter 13, a debtor agrees to work with the court’s trustee to structure a repayment plan to clear most or all of their debt. The court appointed trustee will prepare a plan for repayment based on the debtor’s income and living expenses. The time allotted for the plan is 3 to 5 years. During this time, payments are made to the trustee who in turn, pays the creditors.

Why choose Chapter 13 versus Chapter 7

If a debtor does not meet the eligibility requirements under Chapter 7 (e.g. household income exceeds the maximum limits or assets are too high), then Chapter 13 may be a suitable alternative. Chapter 13 offers protection from creditors by restructuring monthly obligations to a more affordable payment and stopping harassing phone calls/collection efforts during the term. It can also be a better choice to stop foreclosure and keep your home. In addition, under Chapter 13, a debtor can keep his/her assets.

Chapter 13 can also greatly assist you if you are underwater on your home. Second mortgages can be “stripped” down to the value of the property while First mortgages can be modified in the process. This could very well provide the opportunity you need to remain in your home.

Why choose Florida Consumer Law Center, P.A.?

Florida Consumer Law Center helps consumers who are overwhelmed by debt every day; making them aware of their options. While aware of our clients concerns and needs, Attorney Charles Cadrecha strives to exceed their expectations.

Additionally, FLCLC offers representation throughout the middle district, a professional team to answer your questions and the availability of emergency conferences.
Contact us now for a consultation